How to Invest in BRIC Mutual Funds
Figure out a long-term plan., Find economic relevance of the mutual fund., Consider load or expenses., Look at access to funds., Contact a brokerage.
Step-by-Step Guide
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Step 1: Figure out a long-term plan.
No single investment is going to be great for you if it's not matched to your overall investment strategy.
Think about how long you want to leave money in the mutual fund and how much gain you think you can reasonably expect over time. -
Step 2: Find economic relevance of the mutual fund.
Managers may advertise the mutual fund as a BRIC fund, but you'll want to do your own research into exactly what holdings make it relevant to the countries in question.
A document called a prospectus gives detailed information about what's in a fund.
Reading this is something pro's call due diligence, and it's a critical step in the investing process. , The "load" of a mutual fund is how much you will have to pay in commission in order to get involved.
Some funds charge annual participation fees called "expense ratios." Look at all of the costs, and balance them against your total projected yield to get a net yield or gain estimate. , Different mutual funds have different kinds of trading platforms.
Some might offer better access than others in terms of trading.
Some will offer a lower minimum investment, so that you don't need to put as much money into the fund just to get started. , When you have an idea of what you want, an established brokerage will help you transfer your money into an account where you will be able to purchase shares in a mutual fund. -
Step 3: Consider load or expenses.
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Step 4: Look at access to funds.
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Step 5: Contact a brokerage.
Detailed Guide
No single investment is going to be great for you if it's not matched to your overall investment strategy.
Think about how long you want to leave money in the mutual fund and how much gain you think you can reasonably expect over time.
Managers may advertise the mutual fund as a BRIC fund, but you'll want to do your own research into exactly what holdings make it relevant to the countries in question.
A document called a prospectus gives detailed information about what's in a fund.
Reading this is something pro's call due diligence, and it's a critical step in the investing process. , The "load" of a mutual fund is how much you will have to pay in commission in order to get involved.
Some funds charge annual participation fees called "expense ratios." Look at all of the costs, and balance them against your total projected yield to get a net yield or gain estimate. , Different mutual funds have different kinds of trading platforms.
Some might offer better access than others in terms of trading.
Some will offer a lower minimum investment, so that you don't need to put as much money into the fund just to get started. , When you have an idea of what you want, an established brokerage will help you transfer your money into an account where you will be able to purchase shares in a mutual fund.
About the Author
Frank Jones
Dedicated to helping readers learn new skills in lifestyle and beyond.
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